Starch Italics 6th Edition
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Transcript of Starch Italics 6th Edition
Starch Italics
Starch Industry Overview
Aug/Sep 2010
GIRACT
Starch Italics Table of Contents Starch Industry Overview Aug/Sep 2010
Aug/Sep 2010 © GIRACT 2010
Crops and grains
p.1 European Commission OKs 6 strains of GM
maize for food and feed
Corn, soybean premiums drop as price rally
spurs farmer sales
p.2 Corn falls from 13-month high as slowing
economy May cut food, fuel demand
Maize weakens on dull demand at higher levels
p.3 Record corn crop forecast
p.4 Private exporters report sales activity for Egypt
BASF plant science identifies case of low level
comingling in Amflora fields in Sweden
p.5 Investigation into starch
Impact from tapioca price
Belarus‘ potato export may reach 1 mio t within
5 years
p.6 China cassava processors seek partners
p.7 Maize starch buyers switch to tapioca
Starch and derivatives
p.7 Kellogg to cut sugar levels in cereal
p.8 Now, Rasna to enter health drink segment
DJ Cargill Executive: India To Export 1 mio t
Sugar
More food companies banish high-fructose corn
syrup
Bio-plastics
p.9 Strong growth predicted for US bioplastics
p.10 US demand for degradable plastics to grow
16.6%
Corn starch bags promise to send plastic
packing
p.11 Cereplast sees larger quarterly loss
Bioplastics company Cereplast one to watch in
2010
p.12 US degradable plastics demand to grow 16.6
percent annually
Developments in polypropylene from propylene
derived from renewable feed stocks
p.13 Cereplast Investing More Than USD 7 lakh in
Seymour, Indiana
Bio-fuels
p.13 ADM profits soar 550% as ethanol margins
improve
p.14 10 of Cargill's Next-Gen biofuel bets
Company News
p.14 Cargill: Wheat supplies up from 2008, trade
barriers a threat
p.15 EU-China trade row looming over potatoes
Corn Products International Inc.
p.16 Tongaat Hulett remains well positioned to
benefit
p.17 A look at Archer Daniels Midland's fourth-
quarter results by unit
Anil Products‘ PAT zooms 121 pc, plans global
expansion
Cargill ends fiscal year with doubling in Q4
profits
p.18 Cargill reports strong fourth quarter results but
overall annual decline
Corn Products gets FTC green light for National
Starch acquisition
p.19 Heartland Sweeteners honored as one of
Indiana's companies to watch
Others
p.19 EU-China trade row looming over potatoes
Regional Language News
Thailand
p.20 Bio-gas' capture renewable energy market
Delivery Strategy document 2. Focused research
costs - increase productivity
p.21 Thailand's Chia Tai International trade office in
China
The starch market gaps, cassava starch is still
high
(Table of contents continued on next page)
Starch Italics Table of Contents Starch Industry Overview Aug/Sep 2010
Aug/Sep 2010 © GIRACT 2010
GIRACT Global Starch and Starch Derivatives study
Giract has just published new multi-
client research into global starch
supply, examining in particular the
impact of the recent economic
downturn on the industry. Details on
the following page.
Regional Language News (Contd’)
Thailand
p.22 Malaysia - Indonesia Army buy Thai rice- A
Commercial mediation success
Reclamation of agricultural products: cassava
starch crop season arrival of the foreign national
is up or down?
Brazil/Argentina
p.22 Parana farmers complain of corn prices
p.23 Tereos has lost USD 17 mio
Government guarantees to support the sale of
maize
p.24 Bahia wants to introduce cassava starch in the
production of bread and pasta
China
p.24 First Shanghai : China starch slightly weaker
than expected profit
Russia p.25 Ukraine is determined by the regime of exports
of maize in 2010, closer to its cleaning -Minister
of Agrarian Policy
Vietnam
p.25 Cassava dishes are bringing large benefits to
farmers p.26 Song Dinh cassava starch factory : Striving to
produce 29kt of cassava starch in the 2010-2011
crop
Tay Ninh cassava price increases, large grower
interest
GLOSSARY
bio ‗000 000 000
cpd cases per day
crore ‗0 000 000
JV Joint Venture
k ‗000
kt ‗000 t
klpd kilo litres per day
lakh ‗00 000
lpd litres per day
mio ‗000 000
M&A Merger
&Acquisition
pa per annum
t t
tpa t per annum
tpd t per day
tph t per hour
tpm t per month
GIRACTStarches and DerivativesImpact of the economic downturnGlobal Production and Supply 2009/10 – 2015
INTRODUCTION The starch industry is one of the world’s largest transformers of agricultural raw material, producing 73 million tons (expressed as primary starch with 12% moisture). For 30 years the starch industry has posted a remarkable average 4% annual growth and shown great flexibility to adapt to changes and opportunities, from raw material sources and changing trade regulations to new production technologies and end-use sector dynamics.
Since 2007, this dynamic has changed abruptly for several reasons:
High demand for agricultural raw materials by the fast growing Asian economies coincided with new competition from the bio-energy boom, especially in USA, leading to a record high in raw material cost
High ingredient costs forced the food industry to undertake a strong cost-cutting drive, and even though starch and their derivatives were earlier seen as ‘low-cost’ ingredients, they have now become a target for replacement in several end-uses
Starch production in Asia continued to expand, fuelled by strong local consumption especially in China, while European players were facing more blows from the ongoing CAP reform in the sugar and potato starch sectors
The economic recession affected starch demand as never before and in almost every end-use sector; e.g. the European paper industry saw a decline by 40% and with enough new mills in low wage countries, this demand in Europe may never be recovered.
Thus, the traditional patterns in starch production and demand have changed dramatically and so did the competitive landscape. The dominant position of Western players and markets is being eroded, both in terms of product portfolios and players and China has emerged as the largest country for supply and demand of starch. Cost-effectiveness and clean labelling have been driving changes in demand.
As these new patterns are emerging, it is the right time for every player and end-user in this field to take stock of new opportunities and threats before making any strategic decisions. This report provides the necessary comprehensive picture of actual global starch production and trade, by product and area, and explores which key factors are likely to influence the future to 2015.
Giract, the ingredients and technologies specialist and leader in market analysis of starches and their derivatives, published landmark studies in ’95, ’00, ’04 and ‘07 which pulled together starch supply by type of raw material and player across the world. These studies have been a reference for all players in the industry and for key end-users. The present update, published in autumn 2010,takes into account the various changes that have occurred across the world in the last few years, and thus acts as an important tool in your strategic planning.
OBJECTIVES • To identify starch and derivative production- by key country/region- by type of raw material- by type of starch and starch derivative- by key producer
• To evaluate trade patterns of different types of starches and derivatives• To estimate availability of starches and derivatives by key country/ region
and of starch by type of raw material• To forecast global trends in starches and derivatives to the year 2015
PRODUCTS Primary starch from different raw materials, including maize, wheat, potato and tapioca. Finished products as starches (native and modified) and starch derivatives (glucose syrup, high fructose syrup, dextrose, other hydrolysates and polyols)
MARKETS Global
TIMESCALE 2009/10 and 2015
REPORT Published September 2010
SUBSCRIPTION Please contact us for subscription details
For more info, contact GIRACT V. Krishnakumar, Jo Goossens24, Pré-Colomb Tel: + 41 22 779 05001290 Versoix/Geneva Fax: + 41 22 779 0505Switzerland [email protected]
www.giract.com
Starch Italics Crops and grains Starch Industry Overview
Aug/Sep 2010 © GIRACT 2010 P a g e 1
European Commission OKs 6 strains of GM maize for food and feed
The European Commission (EC) has approved 6 new
varieties of genetically modified (GM) maize for use as
food and feed in the EU, but not for cultivation. The
authorisations are valid for 10 years.
The approval of the six new maize varieties is the result
of a decision taken by the Commission after member
states failed to return majority decisions either for or
against the approval. Each of the 6 GM maize varieties
in question has received a positive safety assessment
from the European Food Safety Authority (EFSA). EU
member states are deeply divided over GM products.
Critics of GM goods emphasise that the long-term
impact of genetic modification for human and
environmental health is unknown. Member states
Austria, Bulgaria, Germany, Greece, Hungary, Ireland
and Luxembourg have banned the cultivation of
GM seeds, while the Czech Republic, the Netherlands
and the United Kingdom are open to allowing their
farmers to grow the altered crops.
In a recent proposal, the Commission suggested that
each of the bloc‘s member states should be allowed to
decide for themselves whether to allow the cultivation
of GM crops within their borders.
Before states could ban or approve them, however, any
strains would need to undergo a safety assessment by
European Food Safety Authority (EFSA) and receive
EU approval. Of the approvals announced this week,
one renewed a previous decision on Syngenta‘s
insect-resistant Bt11 maize that expired in 2007, while
the other 5 were for stacked maize varieties, which
combine insect and herbicide resistance.
(Continued in next column)
European Commission OKs 6 strains of GM maize for food and feed (Contd)
One of those strains is from Sygenta, two were jointly
developed by DuPont and Dow Agro Sciences, and two
are from Monsanto. Exporters of GM crops outside the
EU are likely to increase their pressure on the EU to
open its markets to imports of the altered crops. The EU
has a zero-tolerance policy on unapproved GM material
in imports. Just last year, Europe‘s supply chains of
animal feed were disrupted when GM-tainted shipments
of feed from the US were turned back at the EU border.
The US has long been critical of the EU‘s anti-GM
position, arguing that it is not in line with Europe‘s
commitments at the World Trade Organization.
(ictsd.org 4 August 2010)
Corn, Soybean Premiums Drop as Price Rally Spurs Farmer Sales
Cash premiums for corn and soybeans shipped to export
terminals near New Orleans declined relative to
Chicago futures as farmers increased sales following a
rally in prices. Corn futures for September delivery fell
1%, or 0.3%, to close at USD 3.895 a bushel on the
Chicago Board of Trade. Soybean futures for
November delivery, the most-active contract, rose 8%,
or 0.8%, to USD 10.18 a bushel. The price for August
delivery was little changed at USD 10.535.
(Continued on next page)
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Corn, soybean premiums drop as price rally spurs farmer sales (Contd)
Corn production will rise to a record 13.43 bio bushels
this year and soybean output will total 3.428 bio
bushels, the highest ever, FCStone Group Inc., a
research company in West Des Moines, Iowa, said
today. In the top 18 producing states, 53% of soybeans
were setting pods and preparing to fill them with beans,
up from 33% a year earlier the 48% average of the prior
five years, the government said yesterday.
Starch accumulation in kernels in the top
corn-producing states was estimated at 31%, up from
17% a week earlier and 13% a year earlier, the USDA
said. ―We will have good crops this year, and we have
them early,‖ reducing demand for lower-quality
supplies from last year, Emslie said. ―The corn harvest
has already begun in the South,‖ and soybeans should
begin by the middle of next month (businessweek.com
3 August 2010)
Corn falls from 13-month high as slowing economy May cut food, fuel demand
Corn fell from a 13-month high as slowing U.S. job
growth signaled that a faltering economy may limit
demand for grain used to make food, animal feed and
ethanol. Company payrolls rose less than expected in
July, the government data showed today, signaling the
economy may be slow in recouping the 8.4 mio jobs
lost since the recession began in December 2007. The
U.S. is the world‘s biggest corn grower, exporter and
consumer. Crude oil fell as much as 1.5%, and hog
futures slipped to a three-week low.
Corn futures for December delivery fell 6 cents, or
1.4%, to USD 4.12 a bushel, on the Chicago Board of
Trade. A close at that price would be the biggest
decline since July 26.
(Continued in next column)
Corn falls from 13-month high as slowing economy May cut food, fuel demand (Contd)
Yesterday, the most-active contract touched USD 4.39,
the highest price since June 15, 2009, after Russia
imposed a ban on grain exports as a drought damages
crops. Before today, corn gained 20% since June 29, the
day before the government said that U.S. farmers
planted less this year than they had planned. Corn is the
biggest U.S. crop, valued at USD 48.6 bio in 2009.
(bloomberg.com 6 August 2010)
Maize weakens on dull demand at higher levels
Maize futures traded on a negative note during a
session on weak demand at higher levels in the spot
market. Maize futures are expected to trade on a
positive note during the day on short covering over
previous fall and coupled with buying interests at lower
levels. The spot prices at major markets in Nizamabad
are hovering around INR 1045 to 1050 per quintal
There is good demand from poultry and starch industry,
but the traders are waiting for the prices to fall further
for their buying. Demand is also expected from
neighboring states as they are running short of stocks.
However, Bihar is catering to the requirements of
northern states According to recent government
estimates, India's maize production may go up in
2010-11 crop years to over 19 mio t on prospects of
good rains, better usage of seeds and a higher acreage
in traditional paddy growing states.
While in AP region maize sowing is seen not as per
expectations as the farmers in Andhra Pradesh have
turned to Soybean, which is more profitable compare to
Maize. (commodityonline.com 5 August 2010)
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Record Corn Crop Forecast
U.S. corn production is forecast at 13.37 bio bushels, up
255 mio bushels from last year and, if realized, the
largest corn crop on record. Harvested acreage is
forecast at 81 mio acres for grain, unchanged from last
month but up 1.4 mio from last year. Based on the
conditions, yields are expected to average 165 bushels
per acre, up 1.5 bushels from last month‘s yield
projection of 163.5 bushels and the actual 2009 yield of
164.7 bushels. If realized, this would be the highest
yield on record.
(Continued in next column)
Record Corn Crop Forecast (Contd)
The August 1 corn objective yield data indicate the
second highest number of ears per acre on record for
the combined 10 objective yield States (Illinois,
Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska,
Ohio, South Dakota, and Wisconsin), only behind the
record year of 2009. Record-high ear counts are
forecast in Illinois, Minnesota, Missouri, and
Wisconsin. As of August 8, 71% of the crop was rated
in good to excellent condition in the 18 major corn
producing States, up 3% points from a year ago.
Total corn use for 2010-11 is forecast up
130 mio bushels to 13.49 bio bushels this month as a
result of increased exports and FSI. FSI use is increased
30 mio bushels to 6.09 bio. High-fructose corn syrup is
raised 20 mio bushels to 525 mio as a result of expected
increased exports to Mexico. Glucose and dextrose and
starch are both raised 5 mio bushels to 260 and
250 mio, respectively, for 2010-11. Corn used for
ethanol remains unchanged this month at
4.7 bio bushels. As foreign feed wheat prospects are
reduced this month, U.S. exports for 2010-11 are
increased 100 mio bushels to 2.05 bio. Increases in
production are more than offset by higher expected total
use and lower carryin reducing projected ending stocks
61 mio bushels this month to 1.312 bio.
For the 2009-10 marketing year, imports are lowered
2 mio bushels to 8 mio this month and exports are
raised 25 mio bushels to 1.975 bio, reflecting shipments
to-date. Corn used in HFCS and glucose and dextrose
are both raised this month to 515 mio and
255 mio bushels, respectively. HFCS was raised
because of strong exports in June and a reduction in
Mexico‘s 2009-10 sugar production. Starch use is also
increased 5 mio bushels to 245 mio. Ending stocks for
2009-10 are lowered 52 mio bushels to
1.426 bio bushels. In the 2008-09 marketing year,
exports are lowered 9 mio bushels to 1.849 bio bushels.
(Continued on next page)
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Record Corn Crop Forecast (Contd)
FSI use is raised by 32 mio bushels to 5.025 bio
because of revision to monthly ethanol production by
the Energy Information Administration. Together, the
revisions lower feed and residual use 23 mio bushels to
5.182 bio for 2008-09. Corn prices received by farmers
for 2010-11 are projected at USD 3.5-4.1 per bushel, up
5 cents on both ends of the range this month. The
marketing year average reflects higher prices for corn
with tighter ending stocks and lower global feed grain
supplies. The 2009-10 corn price remains unchanged at
USD 3.5-3.6 per bushel. (cattlenetwork.com 16 August
2010)
Private Exporters Report Sales Activity for Egypt
Private exporters reported to the U.S. Department of
Agriculture export sales of 240kt of corn for delivery to
Egypt during the 2010-11 marketing year.
The marketing year for corn began September 1. USDA
issues both daily and weekly export sales reports to the
public. Exporters are required to report to USDA any
export sales activity of 100kt or more of one
commodity, made in one day to one destination. Eastern
time on the next business day following the sale. Export
sales of less than these quantities must be reported to
USDA on a weekly basis. (fas.usda.gov 18 August
2010)
BASF Plant Science Identifies Case Of Low Level Comingling In Amflora Fields In Sweden
BASF Plant Science identified extremely small
quantities of Amadea potatoes in Amflora fields planted
in Northern Sweden during the course of the regular
in-house quality controls. The fields in question have
been planted for seed multiplication of the genetically
modified starch potato Amflora.
(Continued in next column)
BASF Plant Science Identifies Case Of Low Level Comingling In Amflora Fields In Sweden (Contd)
Amadea is BASF‘s second starch potato variety that
was submitted last week for regulatory approval in the
EU by BASF Plant Science. The level of comingling is
less than 0.01%, which translates to 47 Amadea plants
among approximately 680kt Amflora plants.
BASF Plant Science removed all Amadea plants from
the fields. The comingling was identified because
Amadea flowers are white, while Amflora only
develops a few violet flowers. All Amadea plants have
been removed during the growth period and did not
enter the commercial starch production. No Amadea
potatoes were identified in these fields.
Amflora and Amadea are two genetically modified
potato varieties that produce pure amylopectin starch.
Conventional potatoes produce a mixture of
amylopectin and amylose. In many potato starch
applications, for example in the paper, adhesive and
food industries, only amylopectin is needed, and
separating the two starch components is uneconomical.
Amflora and Amadea produce pure amylopectin starch
and thus help to save resources, energy as well as costs.
Moreover, paper coated with amylopectin starch has a
higher gloss, and the addition of amylopectin starch to
concrete and adhesives can be processed for a longer
period of time.
In the case of Amflora, BASF Plant Science and its
partners in the starch industry decided to focus on
industrial applications. Due to the demand for
amylopectin starch in the food industry, BASF Plant
Science will be working with its partners to evaluate
potential applications for its Amadea potato in this area.
(ttkn.com 7 August 2010)
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Investigation into starch
The Ministry of Commerce announced Monday on its
website that it will launch an anti-subsidy investigation
into potato starch imported from the EU. It was the first
time for the country to launch such an investigation
against the European Union.
The ministry decided to launch the investigation after
receiving an application from the China Potato Starch
Society June 30, which accused the EU organizations
and its member governments of having given subsidies
to the accused potato starch companies.
According to the announcement, the investigation will
be completed August 30, 2011, and can be prolonged to
February 29 under special circumstances.
(business.globaltimes.cn 31 August 2010)
Impact from tapioca price
Increasing tapioca starch prices will likely delay some
cassava-based food additive projects, say
manufacturers. Domestic prices of tapioca starch have
been rising strongly in line with costly cassava roots, as
output has dropped due to drought and an invasion of
pink cassava mealybugs. Starch prices hit 19.50 baht a
kg on average this month, driving export prices above
USD 600 per t, compared with 12 baht per kg and
USD 400 per t earlier this year and 8 baht a kg and
USD 280 per t last year.
Chaodee, a producer and exporter of tapioca starch,
plans to invest 200 mio baht to produce maltodextrin, a
polysaccharide used as an additive in food and medical
products. Strong starch prices decrease the
competitiveness of cassava-based maltodextrin
compared with imported products produced from other
kinds of flour. Corn-based starch from China is now
23-24 baht per kg, compared with 27-29 baht for
cassava-based maltodextrin made here.
(Continued in next column)
Impact from tapioca price (Contd)
Cassava production is estimated to drop to 20-21 mio t
this year, or 30% from the previous season. The
company, located in the Northeast, uses about 2kt of
cassava roots a day to make 500t of starch for local
paper makers such as Siam Cement and for export to
China, India and Japan. Plans to produce ethanol from
cassava have also been put off until production returns
to normal levels, he said.
The maltodextrin project received support from the
Industrial Technology Assistance Programme (iTAP).
iTAP has teamed up with the Suranaree University of
Technology to provide technical support for the project,
which plans to produce about 50 litres of maltodextrin a
day. The agency is also helping the company to turn
cassava waste into bio-fertiliser. (bangkokpost.com 28
August 2010).
Belarus’ potato export may reach 1 mio t within 5 years
Belarus Alexander Lukashenko,the President said, that
within the next five years Belarus‘ potato export may
reach 1 mio t, visited the company Otechestvo,
Pruzhany District, on 7 September. The President was
told that there are plans to increase the land under
potato from 51 000 hectares now to 65 000 hectares
within the next five years. Potato production in the
public sector may be doubled to reach 2 mio t. Out of
the figure 500kt can be exported. After talking to the
Brest Oblast Governor the Belarusian head of state said
he believes that Belarusian producers are capable of
exporting up to one mio t of potatoes.
Alexander Lukashenko was informed that the improved
seed production system will allow concentrating seed
potato production in 16 seed production companies,
enabling potato seed certification at every stage, fully
satisfying the demand of corporations and individuals
for quality seed potatoes. (Continued on next page)
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Belarus’ potato export may reach 1 mio t within 5 years (Contd)
There are plans to continue making potato cultivation
companies larger, with land under potatoes in each
company at least as large as 300 to 500 hectares. The
larger companies will need specialized machines for
cultivating and harvesting potatoes. For the sake of
developing potato production there are plans to build
new up-to-date potato storage facilities and remodel
and upgrade the existing ones with their total capacity
close to 400kt.
As far as potato processing is concerned, there are plans
to start manufacturing up to 18kt of starch, around 12kt
of potato products. It will be necessary to create their
own feedstock zones for the sake of cultivating potatoes
for specific uses in order to manufacture specific
products. To further develop potato growing, there are
plans to use large companies, which land under
potatoes is as large as 300-500 hectare in each
company, to set up 14 integrated structures to
manufacture, store, process and sell potato and potato
products. Specialists believe that all these measures will
allow raising the quality of food potato and industrial
potato, enabling the production of an extensive range of
potato products, reducing potato processing wastage as
well as potato products import. (law.by 7 August 2010).
China cassava processors seek partners
More than 30 Chinese cassava importers and suppliers
of cassava processing technology met local businesses
on September 7 in HCM Cityto exchange information
and seek business partners. The meeting was arranged
by the Trade Promotion Agency under the Ministry of
Industry and Trade, the China Trade Office inVietnam,
the China Cassava Starch Industry Association and the
Vietnam-China Trade Promotion Centre.
(Continued in next column)
China cassava processors seek partners (Contd)
Cassava, an edible root, has become an increasingly
profitable export for Vietnam due to growing demand
in foreign markets, said Le Xuan Duong of the Trade
Promotion Agency.
With the huge demand for cassava used to produce
food, animal feed and ethanol-blended petrol,China
every year needs to import more than 6 mio t of cassava
to meet its production needs. Vietnam has more than
5 lakh hectares under cassava cultivation and an output
of more than nine mio t of fresh cassava a year. Of this,
it annually exports more than 4 mio t after meeting
domestic demand. Duong said, Vietnam‘s cassava
exports are mostly starch powder and dried chips.
However, Vietnam was only able to export 1.14 mio t
of cassava worth 307 mio USD in the first six months
of this year, down 52.4% in volume and 12.8% in value
compared to the same period last year.
Wen Yu Ping, Chairwoman of the China Cassava
Starch Industry Association, said China was a huge
market for cassava chips and starch, but most cassava
products in Vietnam were produced on a small-scale,
making it difficult for Chinese importers to purchase in
large volumes.
Khanh said,Cassava is now an important source of
income for small farmers in many provinces. Cassava
area and output have increased strongly in the last
decade, from 234 000 hectares in 2 000 to
560 000 hectares in 2009, with yields increasing from
8.6 t per hectare in 2 000 to 16.8t per hectare in 2009.
But the rapid development of cassava production has
also raised environmental concerns because the soil is
exhausted after two or three crops. The sector therefore
needs to adopt appropriate cultivation techniques to
maintain output and protect the soil, Khanh cautioned.
(english.vietnamnet.vn 8 August 2010)
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Maize starch buyers switch to tapioca
Maize starch buyers are watching the trend before
switching over to tapioca starch on the back of falling
tapioca prices in the recent months. Maize prices have
increased by 10-15% in the past one year because of
surging demand for the commodity from poultry
industry while tapioca starch price declined by a
whopping 30% in the past eight months. According to
an analyst from Karvy Comtrade, spot price of maize is
currently pegged at INR 1 125 a quintal at Nizamabad
in Andhra Pradesh. The rise in maize prices has pushed
starch to over INR 1 000 per 50-kg mark. Around 65-kg
starch can be grinded from 100 kg of maize.
Maize starch is mainly used as raw material for
industrial purposes. Industries like textiles, paper,
adhesives, confectioneries, dyes and chemicals,
pharmaceuticals and corrugated boxes use maize starch
as a raw material. Due to fall in tapioca prices,
manufacturers are expected to start buying tapioca
starch in place of maize starch, said J Manjunath,
member of Sago Serve, the only government-run
exchange to trade tapioca products. Currently, price of
tapioca starch has declined to INR 2 100 90-kg bag
from INR 3 200 in January, he said.
Although, price of tapioca starch is almost same as
maize starch, traders are stocking tapioca starch on
hopes of a rise in maize prices sometime in the coming
months, said Rajasekar, a leading tapioca merchant
from Salem in Tamil Nadu.
A report released by Karvy Comtrade said that fresh
arrivals of maize crop is likely to be delayed this year
due to late sowing. The report further added that maize
production is expected to touch 20 mio t this year on
higher acreage and improve yield. Price of the
commodity is expected to go up in the coming months
over fears of crop damage in Karnataka, one of the
major producer of maize in India. (financialexpress.com
9 August 2010)
Kellogg to cut sugar levels in cereal
Health and consumer groups have given a guarded
welcome to the decision by Kellogg to cut the sugar
content of one of its best-sellling children‘s cereals. The
company said it would cut sugar levels in Coco Pops
from 35% to under 30% from next year. Minister of
State at the Department of Food Ciarán Cuffe
welcomed the announcement and called on Kellogg to
extend the initiative to other products.
The Irish Heart Foundation (IHF) and the Consumers‘
Association described the move as a step in the right
direction. However, IHF chief executive Michael
O‘Shea claimed Coco Pops was still an unhealthy
product, and pointed out the new sugar level was twice
that recommended by the UK Food Standards Agency.
Children‘s cereals have been under fire from health
groups for their high sugar, salt and fat levels, which
campaigners claim are contributing to rising levels of
obesity among young people. As a result, sales of
Coco Pops had begun to fall. Kellogg said yesterday its
move was driven by consumer demand rather than any
scientific evidence that high sugar levels were
contributing to obesity.
Jim McNeill, Kellogg Company of Ireland managing
director, said the sugar is to be replaced with starch
from grains and glucose syrup with no use of artificial
sweeteners. Vitamin D is also to be added. He said
Kellogg planned to make further reduction in sugar
levels in Coco Pops in the future, and in other products
in its range. Salt levels have been cut by 44% over the
past 12 years, according to the company. Irish cereal
consumption is the highest in the world, at 8.2 kg per
person per year. (irishtimes.com 5 August 2010)
Starch Italics Starch and Derivatives Starch Industry Overview
Aug/Sep 2010 © GIRACT 2010 P a g e 8
Now, Rasna to enter health drink segment
Soft drink concentrate maker Rasna is looking at
foraying into the health beverages segment with the
launch of three glucose and energy products next
summer, according to chairman and managing director,
Piruz Khambatta. It is also planning to increase the
number of Devil‘s Workshop stores, the company‘s fast
food chain.
The company is currently test marketing its
glucose-based product in Kolkata. The glucose-based
concentrate market has two players, Dabur with
Glucose-D and Heinz with Glucon-D. ―Glucose
concentrate in India is seen as an ultimate health
product. We are currently test marketing Rasna Glucose
Plus in Kolkata. We are also looking at launching
energy drinks simultaneously. We would be launching
these products during the summer of 2011,‖ said
Khambatta.
The new products from Rasna will be targeted at the
mass segment and priced between INR 2 and INR 10.
Rasna is looking at closing FY2011 at INR 400 crore.
Khambatta said that the company is also looking at
increasing its sales force, especially in the smaller
markets as almost 45% of its sales come from these
markets. ―In the last couple of years, we have increased
our sales force from 300 to 750. Every year, we
increase the sales force by almost 10-15%. This year,
too, we would do the same,‖ she said.
Rasna is also looking at increasing the number of
Devil‘s Workshop stores from 300 at present to 700 by
March 2011. (mydigitalfc.com 30 August 2010)
DJ Cargill executive: India to export 1 mio t sugar
India will likely export 1 mio t of sugar in the next
marketing year starting October 1 and is set to become
a regular exporter, an executive at agribusiness trading
company Cargill Inc. said Wednesday.
"India is set to become a structural exporter of white
sugar, thanks to Shree Renuka Sugars and Silk Road,"
Jonathan Drake, head of the sugar unit business at
Cargill Sugar, said at the Indian Sugar Summit.
India, the world's largest sugar producer after Brazil,
has resumed exports of sugar after being an importer
for a few years. Drake said China will emerge as one of
the top 10 sugar importers next year.
(tradingmarkets.com 1 August 2010)
More food companies banish high-fructose corn syrup.
First it was calories, then it was fat and sodium. Now,
the latest health concern is high-fructose corn syrup. As
the country deals with obesity issues, ingredients in
food have come under increasing scrutiny, bringing
some confusion to the marketplace but also
opportunities for companies as they try to differentiate
themselves in a competitive grocery store.
Consumer concern has been getting a quick response
from food companies, as many remove high-fructose
corn syrup from well-known products, replacing it with
cane or beet sugar. Sara Lee Corp. is the latest to jump
on board, removing the sweetener from its two
best-selling breads. High-fructose corn syrup is the
widely used and historically inexpensive sweetener.
Many medical and nutritional experts, as well as the
Corn Refiners Association, say that all sweeteners are
metabolized in the same way.
(Continued on next page)
Starch Italics Starch and Derivatives Starch Industry Overview Bio-Plastics
Aug/Sep 2010 © GIRACT 2010 P a g e 9
More food companies banish high-fructose corn syrup (Contd)
A Princeton University study, on the other hand, has
found that long-term consumption of high-fructose corn
syrup does lead to abnormal increases in body fat,
especially around the belly.
Last week, Sara Lee, the maker of Jimmy Dean
sausages and frozen cheesecake, announced it would
remove high-fructose corn syrup from its Soft &
Smooth and 100% Whole Wheat bread lines because
their consumers - mothers in particular - had asked
them toOver the last few years, Kraft Foods Inc. has
removed high-fructose corn syrup from its Capri Sun
juice drinks, Wheat Thins, Premium crackers, Nabisco
100-calorie packs, and the majority of its salad
dressings. A danger, according to nutritionists, is that a
label reading HFCS-free could become synonymous
with healthy. Keri Gans, of the American Dietetic
Association, said both high-fructose corn syrup and
sugar provide a lot of extra calories and no nutritional
value.
Audrae Erickson, president of the Corn Refiners
Association, cited a survey that said only 3.6% of
consumers are concerned about high-fructose corn
syrup: "A sugar is a sugar, whether it's corn sugar or
cane sugar." Production of high-fructose corn syrup has
been on the decline over the last few years, and that's
putting pressure on the corn-growing industry.
For decades, corn syrup reigned as the industrial
food-sweetener of choice. Trade barriers made sugar
more costly to U.S. consumers, and corn subsidies
made the grain-derived sweetener extremely cheap.
However, increased ethanol production in recent years
has boosted the price of corn and, consequently, of corn
sweeteners. The average price of high-fructose corn
syrup during fiscal 2009 was 31% a pound, compared
with 36 cents a pound for sugar, according to the U.S.
Department of Agriculture. (philly.com 26 August
2010)
Strong growth predicted for US bioplastics
The entry of key players such as Cargill-owned
NatureWorks and Novamount in recent years will
ensure capacity growth so that output reaches 325m
pounds (147m kg) by the end of the period, said The
Freedonia Group. Efforts to reduce both pollution and
reliance on oil-based plastics, as well as continued
consumer demand for sustainable and eco-friendly
packaging will also spur growth, said the study
entitled ‗Degradable Plastic‘ to 2014.
The report suggests the success that appeared to elude
the sector for so long could finally be realised as
growing capacity, the increased use of blends and
potential oil-price volatility all combined to boost
demand. Performance of the Bioplastics is also
improving thanks to the use of more polymerisation,
blending techniques and higher yield processing
technology, it added.
The US Bioplastics sector is currently dominated
by polylactic acid (PLA) and starch-based plastics. PLA
is forecast to make annual gains of 20% until 2014 on
greater availability, greater processor familiarity and
performance that will expand potential applications.
An increasing number of suppliers, improved resin
grades and better blending techniques with other
biopolymers are predicted to help starch-based plastics
grow at around 11% per year.
A more buoyant outlook for the sector is spurring the
development of new products –
with polyhydroxyalkanoate (PHA) predicted for most
growth. The study estimates that the development of
new PHA grades will see it capable of replacing
polyolefins in higher performance injection moulded
articles as well as containers, bottles and food service
disposables. Degradable Plastic to 2014 is available
from The Freedonia Group priced US USD4 800
(foodproductiondaily.com 1 August 2010)
Starch Italics Bio-Plastics Starch Industry Overview
Aug/Sep 2010 © GIRACT 2010 P a g e 1 0
GIRACT Sweeteners & Starch Price Monitoring
Giract provides quarterly prices of white sugar,
key starches and their principal derivatives used
in the food industry across major regions. The
report comprises tables and commentary on
price movements as well as charts which track
annual running price series. Details on the
following page.
US demand for degradable plastics to grow 16.6%
US demand for degradable plastics is set to grow 16.6%
per year to 325 mio pounds (147.7 mio kilos) by 2014,
giving the market a value of USD 380m, according to a
new Freedonia report. Freedonia says that even though
degradable plastics have been on the market for
decades, growth was limited because of high cost and
various performance drawbacks.
Now, interest in envinronmental friendly products is
strong and future opportunities will come from
―continued capacity growth, efforts to reduce pollution
and US reliance on petroleum products, and consumer
demand for sustainable, environmentally packaging and
manufactured goods‖, says the firm.
PLA and starch-based plastics currently dominate the
market and both will continue to experience strong
growth. The PLA market is expected to grow 20.5% per
annum to 2014, totalling 140 mio pounds
(63.6 mio kilos). The starch-based plastics market will
grow 11.2% to 85 mio pounds (38.6 mio kilos).
However, Freedonia says a relatively new product –
polyhydroxyalkanoate (PHA) – will experience rapid
growth rates of 103.6%, boosting the market to 35 mio
pounds (15.9 mio kilos) by 2014
―While sales of PHA were negligible in 2009, rapid
growth over the next ten years should boost the product
up among the leading types of degradable plastics,‖
says Freedonia. ―Growth is predicted on significant
capacity increases, competitive pricing and the
development of grades capable of replacing polyolefins
in higher performance injection moulded articles.‖
(europeanplasticsnews.com 2 September 2010)
Corn starch bags promise to send
plastic packing
After gaining popularity in Europe and America, corn
starch bags are finally here and are all set to replace
bags made of plastic and oxy-degradable materials.
―The bags are made of resin drawn from corn starch.
While all other materials have a limited shelf life of six-
eight months, the corn starch bags can be used for as
long as one wishes to. Unlike other materials that
decompose by getting divided into fragments and later
being consumed by bacteria, the bags decompose when
thrown in soil or garbage, enriching the quality of soil.
Once thrown in the litter, 75% of composting process
takes place in 90 days. In four months, the entire bag
composts,‖ said Vivek Mehta of city-based Balson
Industries, sole manufacturer of such bags in Pune.
City-based Protecterra Ecological Foundation (PEF), an
organisation working towards conservation of
environment has been involved in promotion of the
bags. Resembling the texture and look of plastic bags,
the corn starch bags are available in three types — bin
bags for garbage disposal that cost INR 110 for 30
bags, shopping bags and carry bags. Costing INR 300
per kg, the corn starch resin is three times costlier than
plastic which is INR 90 per kg, despite which the
manufacturers are optimistic. (expressindia.com 1
August 2010).
GIRACT
Sweeteners & Starch Price MonitoringQuarterly Price Review of Starches, their derivatives and Sugarin Key World Markets
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Starch Italics Bio-Plastics Starch Industry Overview
Aug/Sep 2010 © GIRACT 2010 P a g e 1 1
Cereplast sees larger quarterly loss
Bio-plastics maker Cereplast Inc. reported on Monday a
slightly larger second quarter loss due to higher costs
and lower revenue associated with opening an Indiana
plant.
The El Segundo company also announced a new chief
financial officer. Cereplast reported a net loss of
USD 1.7 mio, compared with a net loss of
USD 1.05 mio a year earlier. The company said the
increase was largely due to restructuring costs as it
moved its distribution and manufacturing operations
from Los Angeles County to Seymour, Ind. Net revenue
fell 24% to USD 684 431, due in part to the plant
relocation.
The company also said it absorbed one-time costs in
connection with moving its stock listing to the Nasdaq.
It had been traded over the counter.
Cereplast makes plastic resin out of 100% renewable
raw materials, including corn, wheat and potato
starches. Most resin is derived from petroleum.
Cereplast announced that it promoted
Heather E. Sheehan to chief financial officer, effective
August 16.
Prior to joining Cereplast, Sheehan served as CFO of
Exemplis Corp. and worked at ConAgra Inc.,
International Rectifier Corp. and Trans Mountain Pipe
Line Co. She earned a bachelor of business
administration degree in accounting from Simon Fraser
University in Vancouver, British Columbia. Shares
closed down 3%, or less than 1%, to USD 3.22 on the
Nasdaq. (labusinessjournal.com 16 August 2010).
Bioplastics Company Cereplast One To Watch In 2010
Following a recent USD 7.5 mio fundraising and new
contract wins, sustainable plastics company Cereplast
is on firm footing for the remainder of the year, and is
poised as the one company for investors to watch as the
bioplastics industry grows due to new and improved
economic and policy measures.
Cereplast designs and manufactures proprietary starch-
based, renewable plastics. These resin families replace
a significant portion of petroleum-based additives with
bio-based material such as starches from tapioca, corn,
wheat and potatoes, meeting the demand from
consumers and manufacturers for sustainable plastics.
Recently, the European Commission published a report
focusing on bio-based initiatives to guide EU politics in
the coming decade. European Bioplastics, a European
branch association representing industrial
manufacturers, processors and users of bioplastics and
biodegradable polymers and their derivative products,
estimates the 2020 market potential for bioplastics will
be a factor of 3 times greater if effective policy support
measures are put in place. Specifically, European
Bioplastics estimates 770kt of bioplastics production
without political support and 2 550kt with supporting
political measures. The latter would represent an
increase in bioplastics market share from its current
0.5% to 5% within 10 years.
(Continued on next page)
Starch Italics Bio-Plastics Starch Industry Overview
Aug/Sep 2010 © GIRACT 2010 P a g e 1 2
Bioplastics Company Cereplast One To Watch In 2010 (Contd)
Cereplast is likely to benefit from this potential growth,
as though the company is yet not profit-making, it is
increasing production partially thanks to a stronger
working capital position after raising fresh capital in
June. Just two months ago, the bioplastics business
entered into agreements to ship 16 mio pounds of
bioplastic resins in 2010, representing up to a whopping
400% increase in shipments over 2009. It also
expanded distribution agreements in South East Asia,
Southern China, South America, Europe and in the
United States with Ashland Distribution.
In its second quarter results, Cereplast recorded that its
gross margin as a % of net sales increased to 30.8%
from 8.6% for the same period last year. Gross profit
rose 157.3% to USD 199211, primarily on account of
cost savings from its new bioplastics manufacturing
facility in Seymour, Indiana, capable of producing
approximately 80 mio pounds of bioplastic resin once
operating at full capacity.
The company even expects its revenues for 2010 to
increase more than 190% over last year to between
USD 8-10 mio, and to achieve operational profitability
by the fourth quarter. As part of its growth strategy,
Cereplast has made new appointments to its team,
including Heather E. Sheehan, who was announced this
week as the new senior vice president and chief
financial officer. (proactiveinvestors.com 20 august
2010).
US degradable plastics demand to grow 16.6% annually
U.S. demand for degradable plastics is forecast to rise
16.6% per year to 325 mio pounds in 2014, valued at
USD 380 mio, according to a new market study from
Freedonia Group Inc. Polylactic acid (PLA) and starch-
based plastics currently dominate the market, and both
products will see strong growth, according to the report. (Continued in next column)
US degradable plastics demand to grow 16.6% annually (Contd)
PLA demand will grow more than 20% per year
through 2014, thanks to increased availability, greater
processor familiarity and performance enhancements
that will expand potential applications.
Freedonia expects strong growth in demand for
polyhydroxyalkanoate (PHA), thanks in part to
development of grades capable of replacing polyolefins
in injection molded applications, as well as in
foodservice disposables, nonwovens, containers and
bottles. Degradable plastics, is available for USD 4 800
from Cleveland-based Freedonia Group.
(plasticsnews.com 31 August 2010).
Developments in polypropylene from propylene derived from renewable feed stocks
Polymers made from renewable feedstocks result in
reduced greenhouse gas emissions when used as a
substitute for petroleum. With significant content
derived from starches, the pricing is not as influenced
by volatile oil prices as traditional plastics. After
developing the market of oil from sugarcane, Brazil is
now looking for a possible green PP derived from
propylene produced from sugarcane.
Braskem and Novozymes succeeded in developing a
new technology to convert sugar into polypropylene.
Brazil's leading PP producer Braskem, has collaborated
with Denmark-based Novozymes for a research project
to develop a process to manufacture PP from
sugarcane. The new polypropylene conversion process
under development will require a new fermentation
process with new microorganisms, with Novozymes‘
know-how. Braskem was the first company in the world
to produce a certified 100% renewable polypropylene
on an experimental basis.
(Continued on next page)
Starch Italics Bio-Plastics Starch Industry Overview Bio-Fuels
Aug/Sep 2010 © GIRACT 2010 P a g e 1 3
Developments in polypropylene from propylene derived from renewable feed stocks (Contd)
Under the terms of the joint development agreement
with Braskem, initial development work will run for at
least five years. Upscaling and further commercial
development will take place in a pilot facility before a
large-scale plant is constructed in Brazil and
commercial products enter the market. It is still a long
way off before a product is manufactured and ready to
be sold.
Hiroshima University and the Japanese automaker
Mazda have joined forces to produce a new range of
polypropylene (PP) materials stemming from non-food
renewable resources with high cellulose content. The
aim is to develop polypropylene by using non food
vegetable products such as plant stalks or wood
shavings.
Cereplast Inc., manufacturer of proprietary bio-based
sustainable plastics, announced the launch of a new
family of resins, Cereplast Hybrid ResinsTM
. The new
resins will complement the existing line of compostable
resins, expanding market applications. Both resin
families are perfectly suited to meet the needs of
converters, manufactures and brand owners interested
in producing and selling environmentally sustainable
plastic.
Known as BiopolyolefinsTM
, they replace 50% or more
of the petroleum content used in traditional plastic
resins with bio-based materials such as starches from
corn, tapioca, wheat and potatoes. With nearly the same
physical characteristics and price point as traditional
polyolefin, they are an ideal way for plastic
manufactures to reduce their reliance on petroleum.
(plastemart.com 31 August 2010).
Cereplast investing more than USD 7 lakh in Seymour, Indiana
Cereplast, a bio-resin manufacturer located in Seymour,
Indiana, has received a USD 1 lakh grant from the
state‘s Recycling Market and Development Board,
the Seymour Tribune reports. The funds are the first the
board has granted since the state froze the board‘s
assets in 2008. The company will use the funds towards
a more than USD 7 lakh expansion, and to hire 38 new
employees. ―Seymour Tribune achieved significant
milestones in the second quarter and further positioned
the company for rapid growth and operational
profitability,‖ said Cereplast founder and CEO Frederic
Scheer.
Cereplast makes fully compostable starch-based
bioresins. Raw materials are derived from renewable
sources such as soy proteins and starches in corn,
wheat, and potatoes. It also makes hybrid resins, which
combine renewable materials with petroleum-based
plastics. (areadevelopment.com 25 August 2010).
ADM profits soar 550% as ethanol margins improve
In Illinois, Archer Daniels Midland Company reported
a 550% jump in quarterly net earnings to USD 446 mio,
reporting that ―profit in ADM‘s Oilseeds Processing
segment increased USD 132 mio due to improved
margins and higher volumes,‖ and that ―corn
Processing profit increased USD 151 mio on stronger
bioproducts results.‖
Overall, the company reported net earnings of
USD 1.9 bio for the year ended June 30, 2010, up
USD 246 mio over the year ended June 2009. The
company reported that ―Bioproducts profit in the
quarter was up significantly from last year‘s loss due to
better ethanol and lysine margins.
(Continued on next page)
Starch Italics Bio-Fuels Starch Industry Overview Company News
Aug/Sep 2010 © GIRACT 2010 P a g e 1 4
ADM profits soar 550% as ethanol margins improve (Contd)
At present, ADM has begun production at its Cedar
Rapids, Iowa, ethanol dry mill, which should be fully
operational by the end of August. And, in Decatur, Ill.,
the Company is working through startup issues at its
propylene glycol plant, which should be fully
operational by end of the calendar year.‖
(biofuelsdigest.com 4 August 2010)
10 of Cargill's Next-Gen biofuel bets
Global agriculture and food gorilla Cargill made
USD 2.6 bio in profit in 2010: The over-a-century-old
company, which is one of the largest private companies
in the U.S.Cargill is one of the larger producers of
ethanol and biodiesel in the U.S. and has corn ethanol
production plants in Iowa, Nebraska and Missouri, as
well as biofuel assets in Europe, Brazil, Argentina,
among other places.
But Cargill has a longer-term strategy to move from the
low-margin business of trading and processing
commodities to the higher margin businesses of
conducting research and development and creating new
chemical and bio-based intellectual property. Cargill
had revenues of USD 107.9 bio in 2010 to get that
USD 2.6 bio profit. Next-gen biofuels is just one area
that Cargill is looking to develop new IP, and it‘s been
partnering with promising startups to help deliver
innovative biofuel technology. (Continued in next
column)
10 of Cargill's Next-Gen biofuel bets (Contd)
Cargill is a dream-come-true partner for a small biofuel
startup. It has a food and ag distribution chain that
would make Walmart jealous; it sells a good chunk of
the grain and food in the US., so it has feedstocks at its
fingertips; and its traditional biofuel business is ripe for
remaking.
There are 10 next-gen biofuel bets that Cargill is
making: Virent Energy. Gevo,Argentinian
Biodiesel,Brazilian Ethanol, U.S. Cellulosic
Ethanol,Verenium Now BP, UK‘s
Greenergy Biofuels,Cargill Ventures, Jet Fuel from
Animal Waste (gigaom.com 9 August 2010).
Cargill: Wheat supplies up from 2008; trade barriers a threat
Cargill Inc. said Thursday declining wheat supplies due
to an extreme drought in the former Soviet Union are a
regional issue but that global supplies remain
comfortable. The global agribusiness giant, whose
operations include grain sourcing, processing and
transport, said wheat crops in countries such as Russia
and Kazakhstan are significantly below expectations,
which is affecting regional supplies.
"From a global perspective, however, the U.S. wheat
crop has been strong and world wheat stocks are higher
than they were during the wheat price spikes in 2008,"
the Minneapolis-based company said in a statement.
Chicago Board of Trade wheat futures prices soared in
2008 to all-time records above USD 13 per bushel due
to climbing demand and crop failures world wide. (Continued on next page)
Starch Italics Company News Starch Industry Overview
Aug/Sep 2010 © GIRACT 2010 P a g e 1 5
Cargill: Wheat supplies up from 2008; trade barriers a threat (Contd)
Russia said Thursday it would ban grain exports from
August 15 until the end of the year. Cargill didn't say
what effect the situation would have on its business.
Bunge Ltd. (BG), which also transports grain globally
and processes other feed products such as soymeal, said
last week the surging wheat market could have a
positive impact on its grain business.
Another rival, Archer Daniels Midland Co. (ADM),
said during its quarterly conference call Tuesday that
the surging wheat prices could potentially boost U.S.
corn exports. (automatedtrader.net 5 August 2010).
EU-China trade row looming over potatoes
A potentially damaging trade row has flared up between
EU and Chinese trade authorities as China claims
Europe has been unfairly subsidising potato starch
exports. The case is the first of its kind and comes as
EU Customs Commissioner Algirdas Šemeta arrives in
Shanghai to put pressure on China to tackle cigarette
smuggling and trade in counterfeit goods. China fears
EU member states are propping up their potato starch
companies in a way that damages Chinese domestic
industries. The Chinese Ministry of Commerce said it
launched a probe after receiving complaints from the
China Starch Industry Association. Beijing said it
would conduct an investigation in line with World
Trade Organisation (WHO) and domestic rules, and
said the process would be fair and transparent.
If it finds that European governments are conferring an
unfair advantage on its exporters, retaliatory duties
could be slapped on European imports. Commissioner
Šemeta did not plan to discuss the issue during his
discussions with Chinese customs officials this week. (Continued in next column)
EU-China trade row looming over potatoes (Contd)
A spokesperson for the Commission's trade directorate
told EurActiv that Beijing has notified Brussels of its
intention to investigate European potato starch
subsidies. Europe's generally low-key potato starch
industry has found itself in the headlines more than
usual this year, primarily as a result of the European
Commission's decision to allow BASF to manufacture
Amflora – a genetically optimised starch potato
Corn Products International Inc.
Corn Products International Inc. continues to see a
turnaround in business as volumes recovered in all
regions in the second quarter. The company trades at
just 12.3x forward earnings, well under the industry
average of 14.5. Corn Products is the largest producer
of dextrose in the world and manufactures starches,
high fructose corn syrups and glucose. The company
provides a variety of ingredients to customers in
60 industries including food, beverages,
pharmaceuticals, animal feed, corrugating, paper and
textiles.
Corn Products beat by 27% in the second quarter : On
July 27, Corn Products reported its second quarter
results which surprised by 16 cents on the Zacks
Consensus Estimate. It was the fourth straight earnings
surprise. Earnings per share jumped 121% to 75 cents
from 34 cents in the year ago period. Sales rose 10% to
USD 1 bio from USD 912 mio in the second quarter of
2009. In South America, customers were buying in the
brewing, confectionary, processed foods and packaging
industries as sales jumped 26%. Customer demand for
sweetners and starches in South Korea and
confectionary and textile industries in Pakistan drove
volume growth in Asia/Africa which had the best sales
rebound, climbing 35% over last year.
(Continued on next page)
Starch Italics Company News Starch Industry Overview
Aug/Sep 2010 © GIRACT 2010 P a g e 1 6
Corn Products International Inc. (Contd)
Given the volume growth, Corn Products felt confident
enough in the second half of the year to raise guidance
to the range of USD 2.55 to USD 2.75 from its prior
guidance of USD 2.25 to USD 2.60. It also believes it
will close on its National Starch acquisition at the end
of September or early October 2010. Within the last
week, 5 estimates have moved higher and 1 lower for
the third quarter, which has pushed the Zacks
Consensus up by 6 cents to 77 cents. For the full year,
the Zacks Consensus climbed to the higher end of the
company's guidance range, up 18 cents to USD 2.71 per
share.
Corn Products still has attractive value characteristics.
In addition to its low P/E, it also has a value price-to-
book ratio of 1.4, under the industry average of 2.3. The
company's price-to-sales ratio is also within the value
parameters of 0.7, under the industry average of
0.8 and under 1.0, which designates value. Its 5-year
average return on equity (ROE) is solid at 11.4%. Corn
Products also rewards shareholders with a dividend of
1.7%.
Tongaat Hulett remains well positioned to benefit
Tongaat Hulett Limited, a sugar, starch and glucose and
aluminium company, announced Monday it remains
well positioned to benefit from the favourable global
fundamentals of increasing demand for agricultural
products, food, renewable energy and land usage. The
total South African maize harvest in 2010 is projected
to be above 13 mio t, the largest crop in 29 years.
The price of maize in South Africa through to July 2011
is trading close to the world price, which contributes
significantly to the competitiveness of the starch
operation. Sales volumes of starch and glucose in the
last three months have continued to show evidence of
the contraction in consumer spending, particularly in
the prepared foods, confectionary and canning sectors. (Continued in next column)
Tongaat Hulett remains well positioned to benefit (Contd)
Increasing sugar production from the 957kt milled in
the 2009-10 season to the installed sugar milling
capacity of 19 mio t per annum, with a simultaneous
reduction in the unit cost of production, is one of
Tongaat Hulett's key focus areas.
Tongaat Hulett's sugar production for the 2010-11
season in Zimbabwe is expected to be between
330 and 350kt (from 259kt in 2009-10) and in
Mozambique to be between 230 and 250kt (from 134kt
in 2009-10). Sugar production started later than
expected due to unseasonal rain in Mozambique and
extensive rehabilitation work on the Hippo Valley mill
in Zimbabwe. Consistent mill throughput rates close to
capacity, without substantial disruptions, are now
required to crush the available cane crop and conclude
the sugar sales by the end of the season.
In South Africa, rainfall in the KwaZulu-Natal north
coast region during the sugar cane growing months of
January to June 2010 was 252 millimeters compared to
a long-term mean of 491 millimeters. Tongaat Hulett's
sugar production in South Africa is now expected to be
slightly below that of 2009-10 notwithstanding the
hectares under cane supplying Tongaat Hulett's mills
increasing by some 2 000 hectares.
These impact on the revenue streams, costs incurred
and the conversion of profits into Rands. The Rand is
currently 16% stronger against the Euro than it was for
the 2009-10 reporting period. Tongaat Hulett's land and
property development activity is currently focused on
value creation for all stakeholders in the growth
corridor north of Durban. In the current economic
climate, with the sale of development land across most
other sectors being depressed, few hectares are being
converted to development in the higher value prime
locations on the coastline and to the west of Durban.
(foxbusiness.com 2 August 2010).
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Aug/Sep 2010 © GIRACT 2010 P a g e 1 7
A look at Archer Daniels Midland's fourth-quarter results by unit
Operating income jumped USD 132 mio for the fourth
quarter as volumes increased on higher demand
overseas. The demand has been particularly strong in
South America and Europe, where increases offset a
decline of oilseed crushing in North America. Refining,
packaging, biodiesel and other results jumped by
USD 58 mio to 79 mio for the quarter.
Corn processing operating income increased by
USD 151 mio for the quarter, even as profits for
sweeteners and starches fell USD 30 mio.
Ethanol profit margins rose in the quarter, prompting
Archer Daniels Midland to start ethanol production at
its Cedar Rapids, Iowa plant, which should be fully
operational by the end of August.
Operating profits were up by USD 195 mio for the
quarter at the Agricultural Services unit, which includes
Archer Daniels Midland's commodities trading desk
and shipping unit. The company said global demand for
commodities is improving modestly, especially in Asia.
Barge rates fell while fuel prices increased, which hurt
profits in the transportation unit. (canadianbusiness.com
3 August 2010).
Anil Products’ PAT zooms 121 pc, plans global expansion
Anil Products Limited, (APL) has recorded a 121%
jump in its profit at INR 8.82 crore in the quarter ended
June 30, 2010. The company had posted a net profit of
INR 3.9 crore in the year-ago period. The total income
of the Ahmedabad-based firm stood at INR 106 crore in
the first quarter of this fiscal, up 40% as against the
INR 85 crore in the corresponding period a year ago.
(Continued in next column)
Anil Products’ PAT zooms 121 pc, plans global expansion (Contd)
The increase in sales and profits is the result of
successful implementation of business strategy wherein
APL has shifted its focus to value-added products,
APL's Managing Director, Amol Sheth, said in a
statement here.
APL, that makes products such as dextrose
monohydrate, anhydrous dextrose and corn syrup used
in textile, food, paper, pharma and other industries in
India, is also looking at overseas expansion. Sheth said,
"We are looking at expanding our global footprint by
opening dedicated offices in the Middle-East and
European countries this fiscal.‖ Sheth said. This will
allow us to work more closely with our foreign
customers and help us gain marketshare in these
regions. ( ibnlive.in.com 16 August 2010).
Cargill ends fiscal year with doubling in Q4 profits
US food and edible oils giant Cargill ended its fiscal
year with a fourth quarter in which its profits more than
doubled, the company announced this week. Cargill
posted fourth-quarter net earnings of USD 691 mio for
the three months to the end of May, up from USD 327
mio a year ago.
Excluding the results from fertilizer firm The Mosaic
Co., in which Cargill owns a majority stake, fourth-
quarter profits were up 87%.
For the full fiscal year, Cargill‘s profits dropped 22% to
USD 3.33bn. Excluding Mosaic, Cargill‘s earnings rose
14% to USD 2.07 bio. Mosaic had dampened Cargill‘s
earnings in 2009. Fourth-quarter revenues rose 11% to
USD 28.1 bio, although annual sales fell 6% to
USD 107.9 mio. (ausfoodnews.com 19 August 2010).
Starch Italics Company News Starch Industry Overview
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Cargill reports strong fourth quarter results but overall annual decline
Cargill, the world's largest agribusiness company, more
than doubled its fourth quarter net earnings compared to
the same period in 2009, but still saw an overall decline
in annual revenues. The US-based business reported its
fourth quarter and annual results on 17 August,
recording net earnings of USD 691 mio for the final
quarter of the company's financial year, compared with
USD 327 mio a year ago. However, annual earnings for
the year ending 31 May 2010 dropped to USD 2.6 bio
from USD 3.3 bio in 2009. According to the company
statement, all five of Cargill's business segments
increased earnings in the fourth quarter. Results were
lifted by lower raw materials costs and a large North
American crop harvest, said Cargill.
Although Cargill does not release detailed financial
results for its business segments, the company
highlighted its 64% holding in fertiliser maker Mosaic
Company as an area that had performed badly last year,
but gave no further information. Despite the fourth
quarter rise in earnings, Cargill remains cautious about
the recovery. "More uncertainty lies ahead, for the
world has yet to transform from a policy-stimulated
upturn to a structurally sustained recovery," the
company said in its annual report.
Greg Page, Cargill's non-family chairman and CEO,
stressed that the company will continue its global
expansion plans throughout the next year. "Over the
past year, we opened 17 new and expanded facilities of
significant scale, including joint ventures. Fifteen more
projects are underway. This represents a global,
multiyear investment of more than USD 1.1 bio," he
said in the statement announcing the results.
Cargill was founded in 1865 by William Wallace
Cargill. The company employs 131 000 people across
66 countries and is still privately owned by the
founding family. (campdenfb.com 18 August 2010).
Corn Products gets FTC green light for National Starch acquisition
Corn Products International, Inc. has announced that
the Federal Trade Commission has granted early
termination of the Hart-Scott-Rodino waiting period
with respect to the Company's planned acquisition of
National Starch, a wholly owned subsidiary of
AkzoNobel. It expects the USD 1.3 bio deal to close in
late September or early October. Dutch paint maker
AkzoNobel acquired National Starch as part of its 2008
acquisition of British paint maker ICI and did not
consider it part of its core business. Corn Products
International is based in Westchester, Ill. The
company's shares were up 31 cents, or 0.9%, at
USD 34.62 Wednesday.
Corn Products International announced that it had
entered into a definitive agreement to acquire National
Starch, a New Jersey-based global provider of specialty
starches, from AkzoNobel, the largest global coatings
and specialty chemicals company, headquartered in The
Netherlands in June. Combining National Starch with
Corn Products will create an ingredient solutions leader
with nearly USD 5 bio in revenues.
National Starch is a recognized innovator in food
ingredients and specialty starches. The company's
technologies are supported by a world-class research
and development infrastructure and protected by more
than 800 patents and patents pending, which drive the
development of advanced specialty starches for the next
generation of food products. National Starch had 2009
revenues of USD 1.2 bio from sales of specialty
starches to both local and multinational customers in
the food, papermaking, consumer and industrial
segments. It has 2 250 employees around the world and
operates 11 plants in eight countries, including new
geographies for Corn Products such as the United
Kingdom, Germany, Australia, and New Zealand.
(foodingredientsfirst.com 19 August 2010).
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Heartland Sweeteners honored as one of Indiana's companies to watch
Heartland Sweeteners is accustomed to receiving
recognition for its xylitol-based Ideal(R) No Calorie
Sweetener. Ideal(R) has always stood apart from other
sugar substitutes and artificial sweeteners on the
market.
But now, Heartland has something new to
celebrate-being honored as part of Indiana's Companies
to Watch. In a ceremony yesterday evening at the
Indiana Roof Ballroom in Indianapolis, Heartland
Sweeteners was one of 41 companies, from a field of
more than 420 nominees and 100 finalists, to receive
the recognition.
The award, presented by the Indiana Economic
Development Corporation, its Small Business
Development Center network, Purdue University and
the Edward Lowe Foundation, recognizes the state's
privately held businesses that employ up to
150 employees and have between USD 750 000 to 100
mio in annual revenue or capital.
Heartland produces and distributes branded and private
label sweeteners for the food industry. Their branded
products of Ideal(R) and Nevella(R) are great for the
whole family, diabetics and people watching their
calorie intake. Ideal(R) and Nevella(R) are perfect for
baking and are distributed in North America, Europe,
Central and South America. (marketwatch.com
27 August 2010).
EU-China trade row looming over potatoes
The case is the first of its kind and comes as EU
Customs Commissioner Algirdas Šemeta arrives in
Shanghai to put pressure on China to tackle cigarette
smuggling. China fears EU member states are propping
up their potato starch companies in a way that damages
Chinese domestic industries.
The Chinese Ministry of Commerce said it launched a
probe after receiving complaints from the China Starch
Industry Association.Beijing said it would conduct an
investigation in line with World Trade Organisation
(WHO) and domestic rules, and said the process would
be fair and transparent.
If it finds that European governments are conferring an
unfair advantage on its exporters, retaliatory duties
could be slapped on European imports.Commissioner
Šemeta did not plan to discuss the issue during his
discussions with Chinese customs officials this week. A
spokesperson for the Commission's trade directorate
told EurActiv that Beijing has notified Brussels of its
intention to investigate European potato starch
subsidies. He said the Commission notes this is the first
anti-subsidy case China has opened against the EU.
"The Commission will continue to monitor China's
trade defence activity and will consider any adequate
reaction if China would impose measures that do not
comply with the WTO rules. In the meantime, the EU's
bilateral relations with China continue business as
usual," he added. Europe's generally low-key potato
starch industry has found itself in the headlines more
than usual this year, primarily as a result of the
European Commission's decision to allow BASF to
manufacture Amflora – a genetically optimised starch
potato (euractiv.com 2 September 2010)
Starch Italics Regional Language News Starch Industry Overview
Aug/Sep 2010 © GIRACT 2010 P a g e 2 0
These are the news derived from regional
publications, translated using online tools,
hence the medium quality of translation.
Thailand
Bio-gas' capture renewable energy market
PTT Plc will spend about USD 9.9 mio to develop
biogas for vehicles, according to
Permsak Shevawattananon, a senior executive
vice-president of the majority state-owned energy
company. Biogas or methane would be processed from
agricultural waste into gas and could be an alternative
to liquefied petroleum gas (LPG) or natural gas for
vehicles (NGV).
"The idea is aimed at using methane gas for vehicles in
rural areas that are located too far from NGV service
stations," said Mr Permsak. PTT is developing two
methane gas production units with an investment of
USD 6.6 mio on a pig farm in Chiang Mai. Daily
methane output of 6.5t would be equivalent to 6 400
litres per day of diesel.
This project will be built and operated by
Universal Absorbent and Chemicals Co, a local biogas
developer, and partially financed by the
Energy Conservation Fund. Construction of the facility
will start next month and it is expected operations will
get underway by the end of next year.
"Although this is a pilot project, it would be the big
start to developing green fuel from waste and could cut
greenhouse gas and use of fossil fuel," said
Mr Permsak. Another project is in Ubon Ratchathani,
where methane gas will be made from cassava starch
waste. PTT will spend USD 2.6 mio to build the facility
that is expected to start operating by the middle of next
year. Its daily output of 8t would be equivalent to 8 000
litres of diesel. (thailandtapiocastarch.net 28 July 2010)
Delivery Strategy document 2. Focused research costs - increase productivity
Mr Yukon Lim Laemthong, Permanent Secretary,
Ministry of Agriculture, said the Committee prepared a
draft strategy Thai Rice No. 2 in 2011-2015 (in
production) and is providing 62 mio hectares of area for
cultivation of of 30 mio t of paddy rice under three
main strategies.
1. Research and Development: It aims to ensure that
rice production quality is improved by using insect
resistant rice which are resistant to environmental
changes, including the development of rice production
and products, to rely on imports from abroad. This will
reduce costs for farmers in terms of factors of
production.
2. To increase the yield from the present, which is
approximately 405 kg to 679 kg per rai,
(6 rai=1 hectare) the measures undertaken are - an
increase of approximately 10% of farmers would
reduce production costs by at least 15% in 2015; using
strategies in the new system of rice; water use
efficiency; the development, production and
distribution of rice seed varieties and to promote and
enhance rice mill production development.
3. To strengthen the farmers from the Department
of rice, which was targeted to increase
the income of rice farmers.
The Ministry of Commerce strategically targets to
achieve the link between production and marketing
before presenting the National Rice Policy Committee
to consider approval as fast as possible. (oatthailand.org
11 May 2010)
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Thailand's Chia Tai International trade office in China
The Thai government committee has approved the
government stocks of 140 000 MT of cassava starch to
be sold to a Chinese logistics company. This will result
not only in partially meeting the market demand in
China, but also lead to increase in starch prices due to
scarcity of raw materials in other parts of the world.
Currently, in Taiwan and Indonesia and many other
markets, buyers tend to look for alternative products of
starch to reduce the cost of raw materials.
According to the report of the agricultural sector at
present, the destruction of pests degree has reached
7.03 mio hectares, the Thai government has approved
USD 3.6 mio to the Ministry of Agriculture to control
the spread of pests. Thailand's Agriculture Ministry said
in a statement, by the end of 2010-11, cassava root
production is expected to reduce at a rate of 7.16%
from 22.95 to 21.3 mio t. By the end of this year,
cassava products prices is expected to follow a rising
trend.
However, since last year due to increase in farmers
planting costs, the Thai Ministry of Commerce issued a
statement saying that by the end of the year 2010-11, it
would start a new cassava crop root deposit increased
from USD 0.05 to 0.06 per kg. The move is likely to
encourage local farmers to grow cassava.
Meanwhile, dry cassava chip exporters tend to buy
more pieces of cassava dry but the market supply is
inadequate. Plus a few days ago in rainfall in many
parts of Thailand, manufacturing of cassava chip dry
film was not carried out. Therefore, all of the cassava
roots were used directly for processing starch. Although
the supply of cassava roots are starch manufacturer, but
can only meet about 30% of its capacity. So this has
also led to rising prices of cassava starch.
(cncassava.com 10 May 2010)
The starch market gaps, cassava starch is still high Continued strong cash price of cassava starch, Vietnam,
Thailand and increasing production of this crop season
is just rumors. The main producing factory warehouse
delivery invoice price is not maintained at
USD 545 to 552 per t.
According to Thailand World News Deputy Spokesman
of Thai Prime Minister Office reported that the Cabinet
agreed to the official inter-form (G2G) sale of 140kt
flour to a China Lianyungang company, equivalent to
USD 348 per t because of its price increase than other
companies.
Thailand's cabinet agreed to sell 140kt of cassava
starch, cassava starch all this volume will have some
impact on the domestic markets panic. Since last
winter, after a new corn market, domestic corn prices
were found to be higher. Corn ongoing auction, the
auction transaction volume and transaction prices are
rising, fueled the market's bullish sentiment and supply
is tight. Due to import of corn, the domestic corn supply
appears to be affected.
Meanwhile, low spring temperatures, snow and rain
weather, delayed spring sowing, the corn planting and
growth is adversely affected by additional risk premium
for the market. Currently the overall market sentiment
is heavy, but there are still some negative factors in the
market. Firstly, farmers now producing corn in
Northeast stock up the high side; Second, the lack of
bright breeding industry needs, while frozen pork
purchasing and storage policies promulgated by the
state, but still needs time to feed the demand recovery.
Mixed long and short corn market factors, the
short-term market movements have a certain deterrent
effects, but long-term trend will remain up.
(cncassava.com 10 May 2010)
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Malaysia – Indonesia Army buy Thai rice- A commercial mediation success
Foreign Trade Department Deputy Prime Minister
Mr Suwan led trade delegation visit to Thailand,
Indonesia and Malaysia to meet with senior executives
of government and agencies that control the import of
rice. Thailand has shown readiness to be the main
source of imported rice to Indonesia and Malaysia.
"In discussions with Indonesia, Thailand has asked to
consider increasing the quality of imported rice thus
Thai jasmine rice will meet the needs of the consumer
level without affecting the domestic price of rice in
Indonesia. Indonesia has also asked to consider a
Memorandum of Understanding (MOU) of rice from
Thailand to buy a new constitution to create food
security for Indonesia. Thailand also told to negotiate
with the government sale of rice to the government
(G-II G) and Indonesia.
Thai ensures that there is enough rice for Malaysia in
order to meet the current needs of rice as well as to
serve as a source for importing rice to Malaysia in the
long run. Malaysia also agrees that the Thai rice is
better than rice from other countries and is willing to
import Thai rice. (thairicemillers 16 Aug 2010)
Reclamation of agricultural products: cassava starch crop season arrival of the foreign national is up or down? The recent strong rains in Thailand, is very conducive
to the growth of cassava seedlings. In growing areas of
Thailand near Cambodia, this year has not been
seriously affected by pests and drought, and the first
price of cassava in this region has always been cheaper.
This year, the area opened several new plants and is
said that in Cambodia a few small factories has
commenced, with prices around USD 480.
(continued in next column)
Reclamation of agricultural products: cassava starch crop season arrival of the foreign national is up or down? (Contd)
Others say: "In October, the domestic price of cassava
starch is USD 687 per t, as Thailand or even decline in
value will not be very severe. The current situation is
that – USD 580 a small amount of turnover, fell to
USD 550 according to the calculation. In August, the
powder is expected to enter the production season in
October, the domestic crop season for 2 months, prices
will rise again"
Although the short-term supply and demand within the
tension is resolved, but in the long run, regardless of
country, Thailand or Vietnam, there is the trend of
demand for cassava raw materials, particularly cassava
ethanol, fresh cassava or dried cassava will become
more intense rush. Cassava in Guangxi province began
to be postponed to December harvest time around, thus
the overall maintenance of the total acreage as well as
the increase in the cassava growing area of the market
would not be greatly affected due to drought last year.
(fx678.com 17 August 2010)
Brazil/Argentina
Parana farmers complain of corn prices
The quality and yield of corn in Paraná winter may lead
to a productivity record. However, farmers still
complain about the price and feature auctions of PEP to
ensure a better income this year. If last winter the corn
was not well in Parana, on account of frost, this year the
weather has helped. 66% have already been harvested
crops, and quality is assessed as very good. Even with a
smaller area of 10%, the Paraná should close the
harvest of winter maize production with a 41% higher.
The expectation of the Secretary of Agriculture is
around 6.3 mio t.
(continued on next page)
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Parana farmers complain of corn prices (Contd) The difference up is on productivity, which should be
more than 4600 kg per hectare of grain and can be a
record for the state. But even with a vintage quality, the
farmer Odair Faval of Cambé, in the northern state, can
not stay optimistic. He planted 150 hectares, half of the
area in 2009 and calculating the costs, for a price that
currently is between USD 8.07 and 8.19 per bag.
The Cooperatives tend to accompany the forward price
for corn, whereas the farmers receive a minimum price.
At Cooperative Integrated, Londrina, over
6 000 members must deliver 380kt of maize by the end
of the harvest in September. For the commercial
manager of the cooperative, Luiz Yamashita, PEP
auctions are still guaranteed price for the grain. The
government has to determine a price that is good for
both producers and consumers too - evaluates the
business manager of the Cooperative Integrated
Luiz Yamashita. (canalrural.com.br 17 August 2010)
Tereos has lost USD 17 mio
The devaluation of the EUR against the real and falling
prices of starch in Europe had a negative impact on the
outcome of the first quarter of the 2010-11 season in
Tereos International, parent company of
Açúcar Guarani. Even with higher prices of sugar and
ethanol in Brazil, the company, which transferred its
assets this year from France to the country, posted a
loss of USD 17 mio, compared with profit of
USD 44 mio in the same period of 2009.
Andre Trucy, President of Tereos International, said the
sale price of starch in Europe fell 9.2%. Revenues from
ethanol (wheat) in the European bloc was also 18.6%
lower.
(continued in next column)
Tereos has lost USD 17 mio (Contd) From October 1, the company, the third largest
producer of starch in Europe, intends to renegotiate all
contracts for the supply of starch with customers, says
Trucy, due to the high international prices of wheat, a
raw material used for starch and ethanol.
In the Brazilian market, says Reynaldo Benitez,
Director of investor relations for Tereos ―Prices of
sugar and alcohol were higher, but production costs
increased in the order of 30%, mainly on account of the
acquisition costs of cane sugar. Net debt fell by 4%
over the first quarter, to USD 2.2 bio.‖ (udop.com
17 August 2010)
Government guarantees to support the sale of maize Representatives of the Ministries of Agriculture,
Finance and Planning will evaluate today the result of
the program for corn and also review the marketing
policy of the wheat harvest which begins in September.
The federal government's participation in the market of
maize 2009-10 harvest allowed the sale of 10.9 mio t,
with application of USD 416 mio since May when it
began operations auctions Award for
Disposal of Product (PEP) Equalizer and Premium Paid
to Producer (Pepro). For Silvio Farnese, general
coordinator of Grain and Annual Crops Department
of Agriculture, the initiative favored the market that
shows signs of improvement in prices.
At the auction conducted by the National Supply
Company (Conab) on Thursday were trading 95% of
300kt of maize offered in Mato Grosso and Goias, in
the form Pepro. The average value of the prize of
opening was USD 3.1 per bag and the closure of
USD 1.79 per bag. The discount reached 30% in
Missouri and 46% in Mato Grosso. (dci.com.br
23 August 2010)
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Bahia wants to introduce cassava starch in the production of bread and pasta
The Secretary of Agriculture of Bahia, agronomist
Eduardo Salles, defended on August 20, 2010, at the
opening of the Expomandioca National Fair of Cassava
in Santo Antonio de Jesus (BA) to join efforts for the
adoption of a law that requires the introduction of
cassava starch in the manufacture of bread and pasta.
"Studies by experts show that you can add up to 25% of
cassava starch to wheat flour without changing the taste
and without any damage, but if we can add 10% will
have a breakthrough." He considered that this
represents an increase of 2.5 mio t in cassava
production and generating over 50 000 jobs.
According to Joselito Motta, a researcher at Embrapa
Cassava and Tropical Fruits, the cassava starch does not
contain gluten and acts as thinner this wheat
gluten. From an economic standpoint, the use of starch
in the bread will represent a savings of
USD 100 to 200 mio per year.
"Brazil imports 80% of the wheat it consumes, bleeding
our economy about USD 1 bio per year." He recalled
that a project this content proceeded in Congress but
was shelved under pressure from international lobby of
wheat. The Embrapa researcher also noted that the
Board of Aldermen of Petrolina just pass a bill
requiring the use of starch in the bread of the municipal
school feeding, waiting now to endorse the mayor.
The secretary noted that a plant starch and modified
starch is being installed in the town of Lage, Jequiriça
Valley, and another is being implemented in Vitoria da
Conquista. The Seagri studying the possibility of
reactivating a starch factory that for years is disabled in
Feira de Santana. (agrosoft.org.br 23 August 2010)
China
First Shanghai : China starch slightly weaker than expected profit
Medium-term revenue and net profit growth of
39.7% and 45.2% : The Company’s revenue reached
USD 171 mio with a gross profit of USD 22.7 mio.
Profit attributable to shareholders was USD 13.1 mio,
up 45.2%. Sales and administrative expenses during the
period was more than expected, resulting in slightly
weaker than expected performance.
Shouguang company will double the capacity of
government to promote growth plans : Signed an
agreement with Shouguang City, the Government will
provide 400 000 sq.m. of land and other preferential
policies for the development of the company 400kt of
corn starch and 50kt of lysine new projects. Shouguang
add 100kt of corn during the period of starch
technology projects have been invested to open
construction.
Expected gross margin in the second half of corn
starch increased more than 12% : Corn prices rose
25.6% to USD 253 per t. Starch business gross margin
rose significantly to 11.1% as scheduled. Linqing plant
will continue to improve capacity utilization in the
second half gross margin and will continue to enhance
the starch business.
Lysine business in the first half to help control
energy consumption, gross margin was maintained
at 21.3% : Lysine business during the company's
revenues of USD 30.1 mio, up 11.2%, sales of lysine
22kt, down 9.4%, average price USD 1308 per t, up
24.1%.
Maltose projects during the period : 100kt capacity
utilization is only 18.7% : Starch sugar business
during the company USD 2.57 mio in revenue, due to
low capacity utilization led to operating profits and
expected the business situation in the second half of
starch sugar better. (finance.qq.com 24 August 2010)
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Russia
Ukraine is determined by the regime of exports of maize in 2010, closer to its cleaning - Minister of Agrarian Policy
Ukraine until the regime of export quotas of corn,
waiting for a more accurate assessment of its crop to
make a calibrated decision on whether to introduce such
restrictions, said Agriculture Minister Nick
Prisyajnyuk. As reported, the forecast grain harvest in
Ukraine in 2010, reduced from 45-47 to 40-42 mio t,
compared to 46 mio t in 2009. In this harvesting of
early grain crops is nearly completed: their harvest was
about 31 mio t, and now the total yield depends on the
condition of corn.
U.S. Department of Agriculture (USDA) last week
lowered the forecast of the corn crop in Ukraine from
13 to 11.5 mio t, while its exports - from 6 to 5 mio t.
The Ukrainian government to ensure food security
intends to introduce quotas on exports of wheat and
barley in the amount of 2.5 mio t from 1 September
until the end of this year. (apk-inform.com 18 August
2010)
Vietnam
Cassava dishes are bringing large benefits to farmers
Cassava growing area is continuously expanding, while
sugarcane material area shrinking has caused
Quang Phu Road plant (under the Sugar Company of
Quang Ngai) forced to refuge in the Factory Road An
Khe (Gia Lai). In Quang Ngai, cassava dishes are
bringing great benefits to farmers, thereby gradually
shrinking farmland for other crops particularly sugar
cane. This is the reason why cassava growing area has
increased sharply, pushing the area of sugarcane to the
lowest.
(continued in next column)
Cassava dishes are bringing large benefits to farmers (Contd)
Tinh An Tay Commune (Son Tinh District), formerly
known as sugarcane land, but now 2/3 area of
sugarcane cassava has been beaten. Although still two
months away to harvest cassava, but now, residents of
Independence Village (West Indian Tinh commune,
Son Tinh District), have rushed to sell fresh cassava
tubers in the field for traders. Nguyen Thi Hai (live in
communal Pure Indian) said, if last year, fresh cassava
fields can only be sold at USD 20.4 to 25.5 per t, this
year, she sold up to USD 45.9 per t. While the service is
available in the second year, and lower cost of care, not
being forced traders or factory price, the sugarcane
production was 1 case per year but only
700 000 to 750 000 price per t.
Due to profit from cassava bring twice as sugar cane, so
the farmers have rushed in as cassava and sugar mills
have to refuge, the cassava processing plant each day a
swollen. Tuan Le Toan, deputy director of Joint-Stock
Company of Quang Ngai Agriculture, said the company
has 5 factories processing cassava flour, that is not
including a plant biofuels made from cassava is being
built in Quang Ngai province.
However, the 2009-2010 crop year, the situation has not
improved, when the province of sugarcane area to just
over 4800 hectares, down nearly 300 hectares and the
output of nearly 179kt of raw materials (86.8% reach).
According to the report of the Deputy Factory Road
(Sugar Company of Quang Ngai), since the year
2010-2011, Quang Phu Road plant will stop production
and relocate equipment and workshops to An Khe
Sugar Plant (Gia Lai) by Resolution of the shareholders
to move down the plant material into Quang Phu Street
to the Deputy to ensure that service sugar cane juice, as
well as to exploit the maximum capacity of the plant,
avoid having to stop production before the current
2-3 months.
(continued on next page)
Starch Italics Regional Language News Starch Industry Overview
Aug/Sep 2010 © GIRACT 2010 P a g e 2 6
Cassava dishes are bringing large benefits to farmers (Contd)
Accordingly, from the 2010-2011 crop year, the
purchase of sugarcane by the sugar mills will take
whole Prussia Feng. Besides, will increase the capacity
of An Khe Sugar Plant from the transplant the
production line of Quang Phu Road plant and will be
completed in late 2011.
That was the plan, but said Cao Minh Tuan, Vice
Director of Quang Ngai Sugar Joint Stock Company,
the factory stopped production in Quang Phu Street one
year period will cause economic damage to the
Corporation Quang Ngai Sugar, as well as the revenue
budget for Quang Ngai province. Furthermore, the
production will entail stopping problem, because to
solve employment for hundreds of employees. (cafef.vn
18 August 2010)
Song Dinh cassava starch factory : Striving to produce 29kt of cassava starch in the 2010-2011 crop
Song Dinh company is planning to use 7 500 hectares
cassava as raw materials ensuring for processing plant
with cassava operating design capacity of 150 t per day
in new production of this crop. It is known that in the
year 2009-2010, the company produced 26 866 t of
cassava starch export to create jobs for nearly
150 workers at the plant with 2.9 mio average income
per person per month, contributions to local budgets
10 bio.
Tay Ninh cassava price increases, large grower interest The prices of fresh cassava in Tay Ninh province has
risen to USD 0.13 per kg. The current price level was
higher than 2009 when it was USD 0.02 per kg.
Accoring to the farmers, fresh cassava price is higher
then ever before. With this price, this year many
farmers planted cassava and cassava companies
purchased large harvest from Tay Ninh. With the
current price, each hectare of cassava harvested
immature, cassava growers still have about 30 mio
profit. For true for cassava harvest, growers can profit
to USD 4080 per hectare.
As cassava processing enterprises shall be made by
wheat, flour market in the world have large demand for
cassava starch, while flour production tend to reduce
flour prices have increased continuously. This year, the
raw materials area of Tay Ninh province is not much
higher than the service area of cassava in 2009.
However, lower pulp yields by farmers and businesses
at taking advantage of high prices of fresh cassava
harvested immature, so the average yield per hectare of
cassava was reduced, even reaching over
20 t per hectare. Harvesting cassava garden will
produce raw materials which will have lower starch
content of cassava grown.